Delong Composite Energy Group Co., Ltd. (SZSE:000593) shares have continued their recent momentum with a 28% gain in the last month alone. Looking back a bit further, it's encouraging to see the stock is up 30% in the last year.
Since its price has surged higher, Delong Composite Energy Group may be sending bearish signals at the moment with its price-to-earnings (or "P/E") ratio of 53.5x, since almost half of all companies in China have P/E ratios under 35x and even P/E's lower than 21x are not unusual. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/E.
Delong Composite Energy Group has been doing a good job lately as it's been growing earnings at a solid pace. One possibility is that the P/E is high because investors think this respectable earnings growth will be enough to outperform the broader market in the near future. If not, then existing shareholders may be a little nervous about the viability of the share price.
See our latest analysis for Delong Composite Energy Group
SZSE:000593 Price Based on Past Earnings August 22nd 2022 We don't have analyst forecasts, but you can see how recent
trends are setting up the company for the future by checking out our
free report on Delong Composite Energy Group's earnings, revenue and cash flow.
What Are Growth Metrics Telling Us About The High P/E?
In order to justify its P/E ratio, Delong Composite Energy Group would need to produce impressive growth in excess of the market.
If we review the last year of earnings growth, the company posted a terrific increase of 16%. However, the latest three year period hasn't been as great in aggregate as it didn't manage to provide any growth at all. So it appears to us that the company has had a mixed result in terms of growing earnings over that time.
Weighing that recent medium-term earnings trajectory against the broader market's one-year forecast for expansion of 38% shows it's noticeably less attractive on an annualised basis.
In light of this, it's alarming that Delong Composite Energy Group's P/E sits above the majority of other companies. Apparently many investors in the company are way more bullish than recent times would indicate and aren't willing to let go of their stock at any price. Only the boldest would assume these prices are sustainable as a continuation of recent earnings trends is likely to weigh heavily on the share price eventually.
The Bottom Line On Delong Composite Energy Group's P/E
The large bounce in Delong Composite Energy Group's shares has lifted the company's P/E to a fairly high level. Typically, we'd caution against reading too much into price-to-earnings ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
Our examination of Delong Composite Energy Group revealed its three-year earnings trends aren't impacting its high P/E anywhere near as much as we would have predicted, given they look worse than current market expectations. Right now we are increasingly uncomfortable with the high P/E as this earnings performance isn't likely to support such positive sentiment for long. Unless the recent medium-term conditions improve markedly, it's very challenging to accept these prices as being reasonable.
The company's balance sheet is another key area for risk analysis. Our free balance sheet analysis for Delong Composite Energy Group with six simple checks will allow you to discover any risks that could be an issue.
If these risks are making you reconsider your opinion on Delong Composite Energy Group, explore our interactive list of high quality stocks to get an idea of what else is out there.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
德隆复合能源集团有限公司。(SZSE:000593)仅在过去一个月,股价就延续了近期的势头,上涨了28%。再往前看一点,看到该公司股价在去年上涨了30%,这是令人鼓舞的。
由于股价飙升,德龙综合能源集团目前53.5倍的市盈率可能发出了看跌信号,因为中国近一半的公司市盈率低于35倍,即使市盈率低于21倍也并不少见。尽管如此,我们还需要更深入地挖掘,以确定市盈率上升是否有合理的基础。
德隆综合能源集团最近做得很好,它的收益一直在稳步增长。一种可能性是,市盈率很高,因为投资者认为,这种可观的收益增长在不久的将来将足以跑赢大盘。如果不是,那么现有股东可能会对股价的生存能力感到有点紧张。
查看我们对德龙复合能源集团的最新分析
SZSE:000593价格基于过去的收益2022年8月22日我们没有分析师的预测,但您可以通过查看我们的
免费德龙综合能源集团收益、收入和现金流报告。
增长指标告诉我们关于高市盈率的哪些信息?
为了证明其市盈率是合理的,德龙综合能源集团需要实现令人印象深刻的超出市场的增长。
如果我们回顾一下去年的收益增长,该公司公布了16%的惊人增长。然而,最近三年的总体表现并不是很好,因为它根本没有实现任何增长。因此,在我们看来,在这段时间里,该公司在收益增长方面的结果好坏参半。
将最近的中期收益轨迹与大盘一年内增长38%的预测进行比较,结果显示,按年率计算,这一数字的吸引力明显下降。
有鉴于此,德龙综合能源集团的市盈率高于其他大多数公司,这令人担忧。显然,该公司的许多投资者比最近的情况所显示的要乐观得多,不愿以任何价格抛售他们的股票。只有最大胆的人才会认为这些价格是可持续的,因为最近盈利趋势的延续最终可能会对股价造成沉重压力。
德龙复能集团市盈率的底线
德龙综合能源集团股价的大幅反弹将该公司的市盈率推高至相当高的水平。通常,在做出投资决策时,我们会告诫不要过度解读市盈率,尽管它可以充分揭示其他市场参与者对该公司的看法。
我们对德龙综合能源集团的调查显示,该集团三年的盈利趋势对其高市盈率的影响并不像我们预期的那么大,因为它们看起来比目前的市场预期更糟糕。目前,我们对高市盈率越来越感到不安,因为这种盈利表现不太可能长期支撑这种积极情绪。除非最近的中期状况明显改善,否则要接受这些价格是合理的是非常具有挑战性的。
该公司的资产负债表是风险分析的另一个关键领域。我们的免费德隆综合能源集团的资产负债表分析和六个简单的检查将使您能够发现任何可能成为问题的风险。
如果这些风险让你重新考虑对德龙综合能源集团的看法,探索我们的高质量股票互动列表,以了解还有什么。
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本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。